Security Systems News

MAY 2017

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Page 6 of 80 May 2017 SECURIT y S y STEMS NEWS Security Stat S 2 By Spencer Ives LONDON—IHS Markit sees dis- ruption in the professional smart home market; Blake Kozak, IHS's principal analyst, smart home and security technology, talked with Security Systems News about recent smart home deals and what this means for the industry. In June 2016, and Comcast each signed agreements to acquire different business units from Icontrol, and these deals were both finalized in early March. Comcast purchased Icon- trol's Converge platform while acquired the Connect and Piper business units. Comcast's acquisition will help the company better control the experience as it expands its smart home business. "It just shows that they're wanting to put more behind it; it's not just a side product for them in addition to their other offerings as a telecom. … It proves that they see this smart home and connected home as more of a long-term project," Kozak told SSN. "IHS Markit estimates that Comcast represented about 2 percent of the American residen- tial remote monitoring market, valued at about $13 billion in 2016," read a recent report from Kozak and Anna Sliwon, IHS Markit analyst. How will the Comcast deal impact the industry? "I think it's going to put even more pressure on the traditional security provid- ers," he said, predicting that more consumers could see a benefit of having many systems on one platform with Comcast. K o z a k doesn't expect A l a r m . c o m 's a c q u i s i t i o n to be "world- e n d i n g f o r e v e r y b o d y, b e c a u s e … we're only at 23 percent penetra- tion." The report noted that Alarm. com and Honeywell remain well positioned in the smart home market. "I think that they're just going to continue to focus a lot on existing customers for the time being, but what needs to happen, though, is finding ways to reach the person that doesn't have any sort of connection, any sort of security, monitoring or home automation," Kozak said. "Connected alarm systems for residential applications are fore- cast to grow at a CAGR of 18 percent, reaching $7.2 billion in 2020," the report noted. IHS predicts a changing focus in the industry; whereas intruder alarm dealers traditionally focused on hardware, they will now begin a stronger focus on software and platforms. "In the end, it's going to shift away from the hardware and more toward the back end," Kozak said. "Prices are only going to come down, and eventually, all of this hardware is going to be commod- itized. So, really, the differentia- tion is going to be on the integra- tions, how well the devices work together—and to what end; will it be for energy savings or security or all of the above?" Dealers focusing more on the software and platforms could lead the industry to increased penetra- tion beyond the current ceiling of about 23 percent of homes. "There needs to be more ease of use for the consumer … even how the products interact obviously is incredibly important," Kozak said. While's acquisi- tion of ObjectVideo—announced March 14—will mostly be focused on the commercial space, it could have some impact on the con- nected home space, Kozak said. "Video analytics could potential- ly help in not only the automa- tion aspect but obviously secu- rity as well, adding an additional layer." SSN IHS weighs in on smart home deals Blake Kozak Focus is shifting from hardware to software and platforms 1.800.786.3423 | 989.891.2800 International DICE Corporation and the DICE Corporation logo are registered trademarks of DICE Corporation in the U.S. and other countries. Copyright 2017 DICE Corporation. All rights reserved. Join us at the 2017 DICE User Group | Register as an attendee, sponsor, or speaker at It's easy to save time, stay organized, and meet your goals with Matrix Sales Management – DICE Corporation's all-new customer relationship tool. Using a tablet, sales teams build custom quotes and contracts, organize data and statistics, and schedule appointments and to-do lists from any location. Reclaim control of your sales process with Matrix Sales Management. StepbyStep Reach Your Sales Goals

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